Business

Thursday 8 December 2016

BNP Paribas plans to cut investment banking costs by 12pc

Published 05/02/2016 | 08:17

BNP Paribas Real Estate Investment Managers (BNPPREIM) has emerged as the purchaser for 8 Hanover Quay in Dublin. Photo: Getty
BNP Paribas Real Estate Investment Managers (BNPPREIM) has emerged as the purchaser for 8 Hanover Quay in Dublin. Photo: Getty

BNP Paribas presented plans to cut investment banking costs by 12pc by 2019 on Friday in a bid to bolster profitability and said it would quit some activities in order to fuel growth.

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Regulatory and compliance costs, along with a previously announced €900m writedown on the value of its BNL Italian unit, pushed net income down 51.7pc to €665m, undershooting the average of analyst estimates of 845 million in a Reuters poll.

But France's biggest bank reported slightly better-than-expected revenue growth in the fourth quarter, with corporate and institutional banking revenue up 8.4pc, partly thanks to a sharp increase in derivatives trading.

BNP Paribas said it planned to generate €1bn in cost savings by 2019 and focus on businesses that use less capital and generate fees, such as securities services, transaction banking, and advisory businesses.

Reuters

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